The CAPM can be abbreviated as:

Suppose you estimate Beta to be 1.743 with a standard error of 0.142. Your broker told you this stock is no more risky than the market. This can be tested by the null hypothesis that the Beta is equal to 1. This model is estimated over 28 observations. Test this against a one sided alternative that the stock is more risky than the market at the 5% significance level.

What is the null and alternative hypothesis?

What are the degrees of freedom?

What is the calculated t value, and the critical t value for a 5% significance level?

Do you think this stock is more or less risky than the market at the 5% level?